Monthly Archives: February 2012

Making money in online display ad sales

Online display advertising is very big business these days. Just ask Facebook and Google about their performance this year – and watch them smile. According to research firm – eMarketer – the guerillas in the online display ad space are Facebook at 16.8% market share (selling $2.58 billion in online display ads) and Google at 16.4% market share (selling $2.54 billion). These two companies combine to have a third of the market for the U.S. display ads.

Consider the growth of these two firms compared to the previous leaders of Yahoo and Microsoft. In 2008, Yahoo held a 16.4% market share but dropped to 10.8% in 2011. AOL and Microsoft also continue to lose market share. What factors are causing the changes? And, how can smaller companies keep up with the giants?

Group Activities and Discussion Questions:

  1. Have students compare the growth trends in each chart. What are factors that might have caused the changes to the firms?
  2. Have students view the eMarketer information: www.emarketer.com
    1. What are recent stories?
    2. What are implications for marketers?
    3. What are implications for companies?
    4. What are trends in digital advertising and spending?
    5. Have students surf Facebook and Google for three minutes. How many, and what types, of online display ads did they see? What are implications for marketers?
    6. How might the growth in online display ad sales affect other media? Affect the messages used?

 

Source:   Ad Age, 2/22/12; www.emarketer.com

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Make new friends at 20,000 feet

You never have to be lonely on a plane again. At least, not if you are flying on Dutch carrier KLM. The company has launched a new service called “Meet and Seat” – a program that allows passengers to upload information from their Facebook and LinkedIn profiles to help choose a seatmate to while away time on a long trans-Atlantic flight. One can select a potential seatmate based on similar preferences and interests. Using virtual profiles to build real-life connections gives airlines a chance to better meet individual needs, and drive up passenger satisfaction.

The concept is that of building a walled social network based on existing frequent flier memberships. This adds to the airlines already large base of information about its customers. It now learns about your habits, home life, attitudes and more – all of which the airline can use to enhance and personalize services. The programs are being embraced by airlines and by independent companies such as Planely (a Danish start-up) and Satisfly (based in Hong Kong).

But what if you don’t like your seatmate? You can’t really “reject” a possible seatmate, but you can move to another seat as long as two days prior to a flight. Not everyone wants to participate; many people use flying time to sit quietly, read, or sleep. Social seating is more likely to appeal to business travelers or those looking for companions. It works by sharing selected information from one’s social profile. The passenger is then presented with a seat map showing others who have also shared profile information. Passengers then reserve the seat next to someone who seems interesting, and that person will receive a message with your profile details.

After all, if you like who you are seated next to, you are more likely to enjoy the flying time, all the while meeting new people.

Group Activities and Discussion Questions:

  1. Have students view the KLM video about the new service: http://youtu.be/eL2lWn7oup4
  2. View KLM’s Web site, and section about Meet and Greet. http://www.klm.com/travel/us_en/prepare_for_travel/on_board/Your_seat_on_board/meet_and_seat.htm
  3. What are advantages of the idea? Disadvantages?
  4. What other companies might use an application such as this?
  5. Review similar products:
    1. http://www.malaysiaairlines.com/in/en/book-and-plan/mhbuddy.html
    2. http://www.planely.com/
    3. http://www.satisfly.com/
    4. What are target markets for these services?
    5. Build a promotional plan for these services.

 

Source:  New York Times, 2/23/12 http://www.nytimes.com/2012/02/24/business/global/selecting-a-seatmate-to-make-skies-friendlier.html

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The new look of American marriage

According to recent research from the Pew Research Center, intermarriage is on the rise, and public acceptance of interracial marriages has grown.  Intermarriage continues to increase, both in frequency and acceptance, in the United States. The share of new marriages between spouses of a different race or ethnicity from each other increased to 15.1% in 2010; this is more than double the percentage in 1980.

Other notable findings in the report are that gender patterns in intermarriage vary significantly by race; recent newlyweds who have “married out” are similar in characteristics to those who have “married in.” However the overall similarities mask sharp differences that emerge when the analysis examines pairings by race and ethnicity. There are also differences in intermarriage between regions in the U.S. Roughly 22% of all newlyweds in Western states are married to someone of a different race.

Finally, is more intermarriage good for society? According to the survey, 43% say that people marrying different races has been a change for the better in our society. Consider what these changes will mean to companies in the development of promotional campaigns.

Group Activities and Discussion Questions:

  1. 1.     The full report is available at http://www.pewsocialtrends.org/2012/02/16/the-rise-of-intermarriage/
  2. 2.     Have students take the survey on Pew’s Web site:
    1. http://www.pewsocialtrends.org/attitudes-about-the-changing-american-family/
    2. How did students score?
    3. What are surprises from the survey?
    4. 3.     What are the implications of a changing family structure for marketers?
    5. 4.     How should companies market their products in light of this data?
      1. Choose three companies and design key messages to account for the changing family structure.
      2. Choose three products and redesign the product for the changing family structure.

 

Source:   Pew Research Center, 2/16/12,

 

 

 

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